China Extends Trade Truce with US Ahead of APEC Summit Meeting
Beijing pauses critical mineral export controls and tariffs to stabilize relations before presidential talks.
1Strategic Trade Extension
China has officially extended its suspension of export controls on critical minerals for two months, lasting until January 10. This move preserves a broader trade truce established between Washington and Beijing. The decision aims to maintain stability ahead of the upcoming APEC summit in Shenzhen, where leaders are scheduled to meet.
2Tariff Adjustments Implemented
The Chinese State Council announced a two-month extension for the suspension of a 24 percent additional tariff on US imports starting November 10. Despite this relief, a 10 percent tariff remains active. This policy adjustment is designed to foster a predictable environment for bilateral economic ties during ongoing trade negotiations.
3Maritime and Logistics Relief
China’s transport ministry confirmed it will continue to suspend special port fees for US-linked vessels until January 10, 2027. Furthermore, Beijing is maintaining its pause on an investigation into shipping and shipbuilding supply chain security. These measures reflect a coordinated effort to prevent further escalation in maritime and logistics trade sectors.
4US Reciprocal Actions
The United States is responding by suspending action from a Section 301 investigation into China’s maritime and logistics industries. Additionally, the Office of the US Trade Representative is extending 178 existing Section 301 tariff exclusions for Chinese goods. These steps mirror the de-escalation efforts currently being pursued by the Chinese government.
5Rare Earth Supply Context
China’s control over rare earths remains a central point of tension. As of 2024, China accounted for 60 percent of global mined production of magnet rare earths and 91 percent of refined output. Previous export curbs on battery supply chain materials, including graphite and cathode precursors, had sparked global supply chain fears.
6Diplomatic Friction Points
Despite the truce, US officials, including Treasury Secretary Scott Bessent, have urged China to fully implement commitments made during the Busan summit. Concerns persist regarding agricultural purchases and the status of US industrial goods. China has also expressed serious concern over US sanctions targeting Chinese companies linked to Cuban military networks.
7Negotiation and Implementation
Both nations previously proposed a 60 billion dollar package of reciprocal tariff cuts, including 17 billion dollars in US farm goods. However, some US officials argue that China has overpromised and underdelivered on these pledges. The current extensions serve as a temporary bridge while both sides navigate these complex trade disagreements.
8Future Summit Outlook
Presidents Donald Trump and Xi Jinping are expected to hold their third meeting of the year in Shenzhen next week. The outcome of these discussions will likely determine whether the current trade truce becomes permanent or if new restrictive measures will be introduced following the expiration of these temporary waivers in January.
Original article: The National — China Extends Trade Truce with US Ahead of APEC Summit Meeting